Legal Project Management -- an integral part of the law firm

With Alternative Fee Arrangements becoming a becoming more and more prevalent, if not soon the most commonly used billing arrangement used by law firms and demanded by clients, the key to success and profitability of such arrangements are trained legal project managers. Accordingly, evry law student, young associate and certainly every lawyer within a firm needs to be trained in the application of LPM techniques. LPM must be taught begining at the law school level. In addition, law fims must be staffed with non-lawyers LPM professionals.

Jerry Kowalski on the Importance of Recruiting and Building LPM Talent -Legal Project... Page 1 of 5 Jerry Kowalski on the Importance of Recruiting and Building LPM Talent g SHFI~~-!.'.?..1 ~--'" -By Paul C. Easton on August 28,20103:42 AM I No Comments I No TrackBacks The increasing importance of project-management skills to legal and legal-support careers is a common theme on this blog.ill, was happy, therefore, to see this observation corroborated in Jerry Kowalski's new report for Managing Partner magazine, Navigating the Perfect Storm: Recruiting, Training and Retaining Lawyers.ill The report, which serves as a law-firm-HR guide for the "Great Recession," includes project-management among the competencies law firms must acquire in the new economy. Jerry Kowalski is the principle and founder of Kowalski & Associates, a law-firm-management consultancy. Mr. Kowalski was gracious enough to share his thoughts on the lessons learned from the global recession, what this means for the practice of law, and why legal-project management is an essential skill for remaining competitive in the new legal landscape. Tell me more about your firm and consulting practice, Following a quarter of a century of practicing law at some of the nation's finest law firms, I elected to move in to an area which had always captivated me and for which I felt quite well suited and reluctantly left a rather exciting and interesting law practice. My initial focus was in the area of law firm growth and expansion, both geographically and in terms of developing new practice areas and other strategic opportunities. We also focused on working with law firms in related areas, such as marketing, in house training programs, lawyer retention, compensation at both the partner and associate level and enhancing law firm profitability. We have successfully concluded scores of engagements, closed countless transactions and I am rather proud of both our accomplishments and our reputation. You can see more about me and the firm at this link. Some of our prior engagements are listed here. And of course, you can learn a great deal more about me, our firm and our work at www.kowalskiassociates.com and www.kowalskiandassociatesblog.com. Why did you write Recruiting, Training and Retaining Lawyers? What do you want law-firm management to take away from it? You may be too young to recall a run of fantastic novels, by Tom Clancy (beginning with 'The Hunt for Red October" in 1984), all of which were focused on military matters and all of which were runaway best sellers. At the time, Clancy was an insurance broker residing in Annapolis, MD, with no prior military service. While he was in his heyday as a prolific author, , once went to a talk given by Clancy and somebody in the audience asked him how he got in to writing. His response was that in the winter of 1983, his wife LEGAL PROJECT M RESOURC ON AMAZOt.. Become a Fi LIiii Fans: 45 Kindle Version ;:, Subscribe to this (. ADD THIS BLOG ••• Technorati FJ Pages About the Logo Blogs & Blawgs Legal Project Mana! Applications Other Resources PM Degrees, Certifil Continuing Educatic Professional Organi, Standards Bodies Project Managemen Categories Alternative Billing ( Book Reviews (3) CLE (13) Careers (25) Events (8) Exertus Procuraster Humor (3) Knowlege Mangeme Law Firms Who Get Networking (6) News (9) Outsourcing (5) Podcasts (2) Productivity (2) http://legalprojectmanagement.info/20 10/08/jerry -kowalski -on-the-importance-of-recruitin... 8/30/2010 IJerry Kowalski on the Importance of Recruiting and Building LPM Talent -Legal Project... Page 2 of 5 became pregnant with their first child and the NFL players went on strike, thus ruining both of his favorite weekend activities and so he had to find something else to fill his time with. I am afraid that my response is not going to be anywhere as clever. The more time I spent with the profession, while necessarily becoming a student of economics and management at every level, the more I realized that law firms were uniquely anomalous business enterprises. Firms thrived despite these anomalies as the economy expanded and demand for legal services often exceeded supply. The Great Recession changed all of the norms and law firms found themselves being drawn, often kicking and fighting every inch of the way, to make sea changes in virtually every aspect of the way in which they did business. The huge number of unemployed and underemployed lawyers created by The Great Recession stood in incredible contrast to (a) law firms were still offering new graduates, albeit in diminishing numbers, gravity defying $160,000 starting salaries and (b) as the number of unemployed and underemployed lawyers soared, so too did the number of law school students, paying aggregate tuitions of $150,000 to $200,000. I personally feel gratified that my message did appear to get across. A number of reviews, including one in the New York State Bar Association, and those listed here demonstrated that my message appears to have been well communicated and received. In your book, you discuss how developing project-management skills is necessary for firms to exploit the lessons learned from the global recession. How should this inform a law firm's recruiting and training programs? What can attorneys do to take advantage of this to enhance their career prospects? You also note that law schools do not prepare students with the practical stills, such as project management, demanded by the changed legal landscape. How do you think law schools should incorporate project-management training into their curricula? One of the unique anomalies about law firms was that efficiency by professionals in turning out a quality work product was never rewarded. In fact, in the calculus of pain and pleasure, working lawyers who did work efficiently were penalized. Lawyers' performance was judged by law firms in great measure on how many hours they billed. Lawyers who failed to bill a predetermined quota of hours put their jobs in jeopardy. Bonus entitlement was too often predicated on reaching stratospheric numbers of hours billed. In short, the system promoted and rewarded inefficiency. With the huge shift in demand and supply, clients are demanding efficiency by their lawyers and will no longer brook inefficiencies. Clients are rewarding law firms who can efficiently deliver a quality product and terminating those that cannot. (Imagine, if you will, paying an airline for the time it took to get you from Point A to Point B and the more inefficient the airline, the longer amount f time the journey took). There is no law school in existence that teaches project management skills. [This statement will very soon be outdated. Starting this fall, Indiana University Maurer School of Law will offer a course in legal project management. Ed.ill] Some law firms, but very few thus far, are including project management training as part of basic training for new recruits as well as for seasoned lawyers. In 2008, the term "legal project management" was largely unknown. Today, it has its own acronym, LPM, and a Google search of the term yields an astounding 46,200,000 hits. Try it yourself. Thus, among other core skills that law schools need to teach are project management skills, and not simply textbook knowledge of project management. Project Managemen fill Research (8) Resources (22) Samples & Templat, Software (23) Terms and Definitio Tidbits (15) Training (7) Trends (47) Webinars (15) Wellness (1) Monthly Archive August 2010 (6) July 2010 (11) June 2010 (11) May 2010 (20) April 2010 (39) March 2010 (1) January 2010 (12) December 2009 (25" November 2009 (11" October 2009 (8) September 2009 (13 August 2009 (4) July 2009 (14) June 2009 (2) May 2009 (12) April 2009 (3) Sponso Genius Project Man Software for Web a Notes Twitter Updates • LPMTidbits fo Ending 8/28/2 Project Manag http://ow.ly/1 day ago • Jerry Kowalski Importance of and Building L Legal Project, http://ow.ly/daysago • Happy 90th b-Bradbury! 6 da Law schools need to develop clinical programs as part of their curricula which provides hands on experience. More critically, for years, law schools graduates acquired virtually no clinical training in the application of general legal academic knowledge to the commercial world. Law firms fairly universally recognized that the first two years of a http://legalprojectmanagement.infoI20 10/08/jerry -kowalski -on-the-importance-of-recruitin ... 8/3012010Jerry Kowalski on the Importance of Recruiting and Building LPM Talent -Legal Project... Page 3 of 5 lawyer's life with the firm was dedicated to training him or her in the practical skills of being a lawyer. Beginning in late 2009, clients, in an ever rising crescendo, have simply announced that they will not pay for this training. They simply won't pay for any time billed for a first or second year associate. Myown belief, as I write in the book, is that in fairly short order, an entirely new method for educating and training lawyers will emerge. Similarly, head spinning revolutionary changes in the recruitment process will be quite evident within the next 12 to 24 months. Economic realities will admit no other alternative. Your having read the book, Paul, has already given you a keen insight in to the future of recruiting. While my prescience may be a bit less than perfect, chapters I wrote in the spring of last year, which likely would have been viewed by many if not most as pure heresy at the time written, are now simple facts on the ground. Will the adaition of a few courses on project management, marketing, and process effidency to a law school's curriculum really make much of a difference? Is the problem that recent law graduates don't possess the skills that clients demand or is there just decreased demand across the board? As I said, it is not just a few academic courses at the law school level on project management that will carry the day. I, for one, wouldn't be real keen on having a brilliant young man or woman who has done exceptionally well in his or her course work in medical school remove my appendix. Project management is a skill set that requires a combination of academic knowledge and practical application. The same is true regarding lawyers, doctors, dentists and in a host of other professions. Maybe even barbers. Would it not make more sense for law firms to simply hire non-lawyer project management, marketing, and other business professionals rather than expect law graduates to have these skills? I believe that a combination is required. Non lawyer managers and marketing specialists are essential. Those specialists need to have a deep understanding of the art, science and craft of lawyering; they do not need to know how to write a contract or try a case, but they do need to fully appreciate the tasks and challenges a lawyer deals with daily. Similarly, lawyers must learn to fully appreciate the value added to the firm and to its clients by having such professionals deployed in the organization. The battle will be won those firms who successfully harness and integrate the synergistic power the two groups can create. Is allowing U.S. law firms to go public part of the solution? Wouldn't law firms be managed more effidently if they were publicly traded? Public ownership addressees a different problem: Capital. Like any enterprise, firms require capital to operate. That capital was initially created by a law firm's revenue stream. Growth required additional capital. That capital was historically derived from a combination of (a) partners' capital contribution, which was delivered through a combination in deductions in profit distributions to create capital accounts or individual bank loans taken by partner, often on favorable terms from a bank with which the firm had a relationship and (b) straight bank borrowing by the firm. With credit being universally tight, law firms, like other businesses are finding credit more and more difficult to obtain. In addition, bank lending officers have in the past two years required fairly strict underwriting terms from law firm borrowers, and compliance with loan covenants is now minutely monitored. That monitoring and scrutiny has resulted in more efficient and conservative management. • Is it time for V Indian service blend? http:/J 13 days ago • Pruning prof. memberships, new ones. Hov value a prof. r 14 days ago follow n LijitSearch Popular Searche My Content Welcome to Fal ~ Conquering COI • Concordance S Paul C. Easton • Workingwith N; • Issues with lssi '. LexisNexisCon • Electronic Discr " Troubleshoofiru IntroducingCor .-Legal Project M • Legal Process ( Legal Technolo • Lexis NexisCOI Linkedln... TwitterI paulce ~ Legal Project M (surprise c:6 Explore(JjJD Visitors Map Recent Readers Legal Project Management on the Web I've listed severa found of interest wanting to learn Legal Project Mar Please feel free tJ and ... http://legalprojectmanagementinfo/20 1O!08/jerry-kowaiski-on-the-importance-of-recruitin... 8/30/2010Jerry Kowalski on the Importance of Recruiting and Building LPM Talent -Legal Project.. Page 4 of 5 Economists have long debated whether, ceteris paribus, an owner operated enterprise or an investor owned enterprise operates more efficiently. The consensus is that owner operated enterprises provide greater efficiency and profitability. The basic concept is that when it's your own delicate private parts that are in the wringer, as opposed to that of some distant investor, greater efficiency, conservative management, and risk aversion and avoidance afford great comfort to those things that are near and dear to you. I'm always looking out for my readers. Can I squeeze a discount out of you for readers of Legal Project Management? Yes, but only because you snuck the question in at the end, after all of the time I spent responding to your well thought out questions. Call Daniel Smallwood of Ark at 309 495 3105 and ask Daniel for discount code JKNS1. But do warn your readers that if they give this code to somebody who is not one of your subscribers, you will cancel their subscriptions. Feel free to offer the discount to new subscribers as well. I would like to thank Mr. Kowalski again for taking the time to share his thoughts with the readers of Legal Project Management. ill See, e.g., Paul C. Easton, Cowen Group Survey: Legal Praject Management Has Increased in Importance, Legal Project Management, Friday, August 06, 2010, http://legalprojectmanagement.infoI2010/08/cowen·group-survey -legal-project-management-has-increased-in-importance.html (last visited 8128/2010); Paul C. Easton, Project Management a Market Differentiator for Legal Services, Legal Project Management, April 16, 2010, http://legalprojectmanagement. info/201 0/041 project-management -a-market-differentiator-for-legalservices.html (last visited Aug. 28, 2010); Paul C. Easton, Praject Management in Legal Staffing Companies, Legal Project Management, Wednesday, December 02, 2009, http://legalprojectmanagement. info/2009/1 Z/-legalstaffing-agencies-that.html (last visited 8/Z8/2010); Paul C. Easton, Tomorrows Corporate Lawyers: Some thoughts on Richard Susskind's Five Categories, Legal Project Management, Sunday, October 18,2009, http://legalprojectmanagement. info/ZOO9/1 O/tomorrows-coroorate-!awyers-some-thoughts-on-richard-susskindsfive-categories.html (last visited 8/28/2010); Paul C. Easton, Attorney Job Seekers Should Highlight Project Management Skills &: Experience, Legal Project Management, Saturday, August 08, 2009, http://legalprojectmanagement_ infol2009/081 attorney-job-seekers-should-highlight -project -management-skillsexperience.html (last visited 8/Z8/Z010). ill JEROMEKOWALSKNI,AVIGATINTGHEPERFECSTTORMR: ECRUITINGT,RAININGANDRETAININGLAWYER(SZ010). ill Paul C. Easton, Indiana University Maurer School of Law Offers Project Management Course, Legal Project Management, Friday, May 14, 2010, http://legalprojectmanagement.infoI2010/05/indiana-university-maurerschool-of-law-offers-project-management-course.html (last visited 8/28/2010). Categories: Book Reviews,Careers,Project Management in Practice,Trends Tags: Jerome Kowalski,Jerrv Kowalski,Kowalski & Associates,New York State Bar Association 1 tweet retweet a SHARE r/'; 'li No TrackBacks TrackBack URL: http://legalprojectmanagement.info/cgisys/cgiwrap/peaston/managed-rut/mt-tb.cgi /217 Leave a comment Sign in to comment, or comment anonymously. #1 #2 #3 #4 #5 Legal Mana on Me site. Legal Mana Rober Tamir Beast Projec Techr Micha Legal Mana Slide~ Unite Litiga Arbitr Projec So For L, Consi Incor] Mana Legal And [ Resol Dougl P.A. -Corpc Rx fOI Quali1 Mana Proje: in DOl Projec Legal Legal Mana Projec Ove" Lexici Mana, #12 PM HI Law F from See the original I #6 #7 #8 #9 http://legalprojectmanagement.info/20 10/08/jerry -kowalski -on-the-irnportance-of-recruitin.; 8/30/2010 #10 #11 created by paulceaston

"My best business intelligence, in one easy email…"

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Privacy Policy (Updated: October 8, 2015):

hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.